Compound Interval
Definition:
A compound interval is the length of time between the compounding periods in a compound interest calculation. In other words, it's the frequency at which interest is calculated and added to the principal amount.
Example:
For example, if you invest $100 at 5% interest compounded annually, you will have $105 at the end of one year. However, if you invest $100 at 5% interest compounded monthly, you will have $105.06 at the end of one year. This is because the interest is calculated and added to the principal amount more often, which leads to a slightly higher final balance.